Carvana suffered “serious chart damage” after “generally disappointing guidance” in the online vehicle retailer’s otherwise glowing Q4 reports, according to Investor’s Business Daily’s Aparna Narayanan.

Carvana held its Q4 earnings call Wednesday, reporting gains in unit sales (up 50% year-over-year to 114,379), adjusted EBITDA (up 498% to $326.3 million) and revenue (up 46% to $3.547 billion).

But that growth was offset by multiple negative indicators, including a 10% drop in gross profit per unit from Q3, and news of a nearly $1 billion at-the-market equity raise “surprised and spooked some investors,” Narayanan reports, causing Carvana’s stock value to fall far enough to trigger a stop loss.

Shares fell 12.1% Thursday, then 10% on Friday, triggering the stop-loss.

“Late Wednesday, the online used-car seller said it ‘expects significant growth’ in retail unit sales and adjusted EBITDA in 2025, including a sequential increase in the current first quarter,” Narayanan writes. “However, Carvana said its outlook assumes ‘the environment remains stable’ and it did not offer specific guidance.”

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